Singapore Comm Min: Govt Open To Maxis Bid For M1
July 13, 2001
Dow Jones Newswires
KUALA LUMPUR -- Singapore's Minister for Communication and Information Technology Yeo Cheow Tong Friday said the government is open to Malaysia's Maxis Communications Bhd. buying Singapore's MobileOne Asia Pte. Ltd.
"Maxis made a bid. We await the outcome of the bid. But in principle we are a free and open market so unless there are any competition implications, our philosophy is not to intervene," Yeo said on the sidelines of a meeting of telecommunications ministers of 10 Southeast Asian nations.
Yeo added: "It's a commercial decision. It's up to them to decide."
Maxis is one of the bidders for M1, Singapore's second largest mobile phone company, put up for sale by its shareholders.
Regional Wireless Co., a venture between Hong Kong's Pacific Century Cyberworks Ltd. (H.PCW) and Australia's Telstra Corp. (TLS), is the other bidder for M1
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When asked whether Singapore Telecommunications Ltd.'s (P.SGT) rumored interest in Maxis will create competitive problems if Maxis buys M1, Yeo said: "Do not prejudice anything. We'll await the outcome."
Maxis Chief Executive Jamaludin Ibrahim declined to comment on any aspect of the Maxis bid for M1.
The two bidders for M1 are set to raise their offers after M1 rejected their US$1.2 billion bids, a source familiar with the offer told Dow Jones Newswires Thursday.
According to the source, Regional Wireless this week will submit a bid of around US$1.6 billion for M1 financed in part by cash, but mostly through a convertible bond. Bond holders will have the option to convert debt into Regional Wireless stock at a given point.
Such arrangements require Regional Wireless to be listed on a stock exchange.
Regional Wireless is 60% owned by Telstra and 40% owned by PCCW, and has the cellular assets of HK Telecom, which PCCW bought last year.
Maxis Communications will submit a US$1.4 billion bid, which is more heavily weighted in cash than its rival, says the source. Cash is generally more attractive to shareholders than bids funded by stock or bonds.
Keppel Telecommunications Ltd. (P.KTT), Singapore Press Holdings Ltd. (P.SPH) and Cable & Wireless PLC (CWP) own 85% of M1. PCCW owns the 15% balance.
-By Tara Patel, Dow Jones Newswires; 603/2692-5254; tara.patel@dowjones.com
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